âI have sold all emerging markets except Chinaâ: Jim Rogers

Chennai: The 21 per cent year-to-date decline of the Shanghai Composite Index notwithstanding, American investor and investment guru, Mr Jim Rogers, remains optimistic on the prospects of China.

When Business Line queried him, over the e-mail, about his views on India emerging as a strong competitor to China as a major manufacturing hub, Mr Rogers said, âI can see little reason anyone would open in India, instead of China.â

The author of books like âAdventure Capitalistâ, âHot Commoditiesâ and more recently âA Bull in Chinaâ, Mr Rogers is hopeful of a soft impact of an US economic slowdown on China. âIt does for sectors which do business with the US, especially since the Chinese government is rightly trying to slow things down. Other sectors will not be affected,â he said in course of the brief interview.

The strong arm of Chinese government control may aggravate fears of foreign investor but not him. âLook at the results of the many who are there.â But is the country a safe investment destination? The 65-year old expert holds the opinion that China is as safe as most places these days, especially if one is in for the long term. âThere is virtually no foreign money invested in the Chinese markets because of (Government) controls. But huge outflows from any market have an effect,â Mr Rogers averred.

With many in West tagging the present boom in emerging stock markets as a bubble, the creator of Rogers International Commodity Index (RICI) has his own argument. âI have sold all emerging markets except China, â said the man whose favourite Chinese proverb means âbuy low and sell highâ.

But how would the Chinese companies maintain their edge over others when it comes to quality and not necessarily cost, Mr. Rogers said, âThey are improving annually and are now better than all but a few countries in the world.â One should always only invest where things are improving, the original co-founder of famous âQuantum Fundâ added.